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Mortgage interest rates were mostly up compared to a week ago, according to rate data compiled by Bankrate. Average rates for 30-year fixed, 15-year fixed and jumbo loans moved higher, while 5/1 ARM rates declined.
Mortgage rates could gradually come down this year, according to Greg McBride, CFA, Bankrate chief financial analyst. As the Federal Reserve stopped raising rates in 2023, mortgages rates started to drop at the end of Q4. The central bank now may start to cut rates in 2024 — a move that would have broad economic impact, including on the 10-year Treasury, the primary influencer of fixed mortgage rates.
“The 10-year Treasury yield that serves as a baseline for fixed mortgage rates will have a bouncy journey lower, moving back above 4 percent early in 2024 but trending lower as inflation cools and the Fed gets closer to cutting rates,” says McBride. “For mortgage rates, that portends a general downtrend — albeit with fits and starts — in 2024.”
| Loan type | Today's rate | Last week's rate | Change |
|---|---|---|---|
| 30-year fixed | 7.03% | 7.01% | +0.02 |
| 15-year fixed | 6.47% | 6.44% | +0.03 |
| 5/1 ARM | 6.13% | 6.37% | -0.24 |
| 30-year fixed jumbo | 7.07% | 7.06% | +0.01 |
Rates accurate as of January 25, 2024.
These rates are averages based on the assumptions indicated here. Actual rates available on-site may vary. This story has been reviewed by Suzanne De Vita. All rate data accurate as of Thursday, January 25th, 2024 at 7:30 a.m.
Current 30 year mortgage rate advances, +0.02%
The average rate for a 30-year fixed mortgage for today is 7.03 percent, up 2 basis points over the last week. This time a month ago, the average rate on a 30-year fixed mortgage was lower, at 6.95 percent.
At the current average rate, you'll pay $667.32 per month in principal and interest for every $100,000 you borrow. That's $1.35 higher compared with last week.
Use our mortgage calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. This calculator will also help you calculate how much interest you’ll pay over the life of the loan.
15-year mortgage rate goes up, +0.03%
The average rate for the benchmark 15-year fixed mortgage is 6.47 percent, up 3 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost $869 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.
5/1 ARM rate drops, -0.24%
The average rate on a 5/1 ARM is 6.13 percent, ticking down 24 basis points since the same time last week.
Adjustable-rate mortgages, or ARMs, are mortgage terms that come with a floating interest rate. To put it another way, the interest rate will change at regular intervals, unlike fixed-rate mortgages. These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
While borrowers shunned ARMs during the pandemic days of super-low rates, this type of loan has made a comeback as mortgage rates have risen.
Monthly payments on a 5/1 ARM at 6.13 percent would cost about $608 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan's terms.
Current jumbo mortgage rate trends upward, +0.01%
The current average rate you'll pay for jumbo mortgages is 7.07 percent, up 1 basis point since the same time last week. Last month on the 25th, the average rate was lower, at 7.00 percent.
At the current average rate, you'll pay a combined $670.01 per month in principal and interest for every $100,000 you borrow. That's an additional $0.67 per $100,000 compared to last week.
Refinance rates
30-year mortgage refinance rate declines, -0.05%
The average 30-year fixed-refinance rate is 7.17 percent, down 5 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 7.09 percent.
At the current average rate, you'll pay $676.76 per month in principal and interest for every $100,000 you borrow. Compared with last week, that's $3.38 lower.
Where are mortgage rates going?
The Federal Reserve has signaled that it intends to cut rates in 2024, depending on inflation and employment data and other factors. The Fed meets again on Jan. 31.
Current average 30-year mortgage rates are slightly below 7 percent as of mid-January. As the year progresses, expect rates to slowly trend downward, says McBride.
“Mortgage rates will spend the bulk of the year in the 6s, with movement below 6 percent confined to the back half of the year,” says McBride.
The rates on 30-year mortgages mostly follow the 10-year treasury, which shifts continuously as economic conditions dictate, while the cost of variable-rate home loans mirror the Fed’s moves. These broader factors influence overall rate movement. As a borrower, you could be quoted a higher or lower rate compared to the trend.
What current rates mean for you and your mortgage
While mortgage rates change daily, it’s unlikely we’ll see rates back at 3 percent any time soon. If you’re shopping for a mortgage now, it might be wise to lock your rate when you find an affordable loan. If your house-hunt is taking longer than anticipated, revisit your budget so you’ll know exactly how much house you can afford at prevailing market rates.
To help you uncover the best deal, get at least three loan offers, according to Freddie Mac research. You don’t have to stick with your bank or credit union, either. There are many types of mortgage lenders, including online-only and local, smaller shops.
"All too often, some [homebuyers] take the path of least resistance when seeking a mortgage, in part because the process of buying a home can be stressful, complicated and time-consuming," says Mark Hamrick, senior economic analyst for Bankrate. "But when we’re talking about the potential of saving a lot of money, seeking the best deal on a mortgage has an excellent return on investment. Why leave that money on the table when all it takes is a bit more effort to shop around for the best rate, or lowest cost, on a mortgage?”
More on current mortgage rates
- Expert poll: Mortgage rate trend predictions for this week
- Latest mortgage news for this week
- Compare mortgage rates for today
Methodology
Bankrate displays two sets of rate averages that are produced from two surveys we conduct: one daily (“overnight averages”) and the other weekly (“Bankrate Monitor averages”).
The rates on this page represent our overnight averages. For these averages, APRs and rates are based on no existing relationship or automatic payments.
Learn more about Bankrate’s rate averages, editorial guidelines and how we make money.
About Bankrate
Bankrate, founded in 1976, is dedicated to helping people make informed financial decisions. The company follows a strict editorial policy, ensuring that all content is objective, accurate, and trustworthy. Bankrate's team of highly qualified professionals and subject matter experts focuses on providing consumers with accurate and unbiased information to help them make smart personal finance decisions. The company's commitment to editorial integrity and independence is reflected in its award-winning content, which is not influenced by advertisers. Bankrate is an independent, advertising-supported publisher and comparison service, and it strives to provide consumers with expert advice and tools needed to succeed in their financial journey.
Mortgage Rates and Trends
According to Bankrate's data, the current average rates for various types of mortgages are as follows:
- 30-year fixed: 7.03%
- 15-year fixed: 6.47%
- 5/1 ARM: 6.13%
- 30-year fixed jumbo: 7.07%
- 30-year fixed-refinance: 7.17%
Bankrate's chief financial analyst, Greg McBride, CFA, predicts that mortgage rates could gradually come down in 2024, with the 10-year Treasury yield influencing fixed mortgage rates. McBride anticipates a general downtrend in mortgage rates throughout the year, albeit with fluctuations.
Impact of Federal Reserve's Actions
The Federal Reserve's decision to potentially cut rates in 2024 is expected to have a broad economic impact, including on the 10-year Treasury, which serves as a baseline for fixed mortgage rates. McBride suggests that as inflation cools and the Fed gets closer to cutting rates, the 10-year Treasury yield may experience a bouncy journey lower, ultimately leading to a general downtrend in mortgage rates.
Advice for Borrowers
Bankrate advises borrowers to consider locking in their mortgage rates when they find an affordable loan, as rates are not expected to return to lower levels in the near future. Additionally, borrowers are encouraged to shop around for the best mortgage deals and to obtain at least three loan offers to uncover the best possible deal.
Expert Insights and Recommendations
Mark Hamrick, senior economic analyst for Bankrate, emphasizes the importance of seeking the best deal on a mortgage, as it can result in significant savings. He encourages homebuyers to put in the effort to shop around for the best rate or lowest cost on a mortgage, as it offers an excellent return on investment.
Mortgage Rate Trend Predictions
Bankrate's expert poll suggests that mortgage rates will spend the majority of the year in the 6s, with movement below 6 percent expected to be confined to the latter half of the year. The rates on 30-year mortgages are expected to closely follow the 10-year Treasury, while the cost of variable-rate home loans will mirror the Fed's moves.
Methodology
Bankrate displays two sets of rate averages produced from daily and weekly surveys. The rates provided are based on no existing relationship or automatic payments, and the company maintains transparency about its rate averages, editorial guidelines, and how it generates revenue.
